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Resuming Coverage with a Target Price of INR 600/Share
ICICI Securities has recently resumed coverage on Vedanta, setting a target price of INR 600 per share. This optimistic outlook is anchored on the company’s strategic focus on enhancing volume, value, and cost reduction across its segments. As investors seek growth opportunities, Vedanta’s approach positions it favorably within the competitive landscape.
Key Earnings Growth Drivers
One of the primary factors driving Vedanta’s earnings growth is the significant cost reduction initiatives implemented across all divisions. The company is expected to see volume increases at both Zinc India and Zinc International, highlighting its commitment to efficiency. Additionally, the oil and gas sector of Vedanta is poised to benefit from a progressively higher share of RSC blocks, promising further upside potential.
Future Growth Plans and Debt Reduction
Looking ahead, Vedanta has laid out a robust plan for volume-led growth across its other divisions. The company’s proactive measures to drastically reduce its parent’s debt will play a pivotal role in supporting its dividend yield at high levels. With a potential further debt reduction of USD 2.5 billion over the next three years, investors can expect a more solid and stable financial platform for long-term growth. Overall, ICICI Securities remains bullish on Vedanta’s trajectory, making it a compelling consideration for investors.
